SIM-0278

Almirall achieves Net Sales growth of 6.4%, driven by strong European dermatology performance Almirall's European Dermatology business continued to be the driving force behind Almirall's strong performance in the first nine months of 2023, with a growth rate of 15.9% underpinned by the success of Ilumetri® and other recently launched products Good performance of Key products in Europe: strong year-on-year growth of Ilumetri® (psoriasis) across geographies; Wynzora® (psoriasis) sales gaining traction, reinforced by recent country launches; and Klisyri® (actinic keratosis) rollout driving its favourable uptake Lebrikizumab (EBGLYSS®) received positive CHMP opinion for marketing authorization in patients with moderate-to-severe atopic dermatitis; EU approval is usually expected within two months of the CHMP's positive opinion. Pipeline development: based on the large field study data of tirbanibulin, the company submitted a supplementary New Drug Application (sNDA) in August 2023 and expects approval and a subsequent launch in H2 2024 The additional funds obtained from the capital increase executed in June allowed Almirall to take strategic steps to expand its capabilities. In the third quarter Almirall completed the acquisition of the rights of Prometax® in Spain, highly synergetic with Almirall’s existing neurology business in Spain. In parallel, the company continues to explore other opportunities for early and mid-stage assets Almirall is on track to meet mid-single net sales digit growth (vs. initial low- to mid-single guidance) and continues to expect total EBITDA between €165 MM - €180 MM BARCELONA, Spain--(BUSINESS WIRE)-- Almirall, S.A. (ALM), the global biopharmaceutical company based in Barcelona, has announced its 9M 2023. Financial highlights (€ rounded million) 9M 2023 9M 2022 Variation Net Sales 674.6 633.8 6.4% Core EBITDA 137.1 134.0 2.3% Total EBITDA 138.2 146.4 (5.6%) Net Income 13.6 10.9 24.8% Normalized Net Income 14.4 34.5 (58.3%) Summary of results Net Sales reached €674.6 MM, a +6.4% year-on-year increase driven by good performance of the dermatology portfolio in Europe. Total EBITDA was €138.2 MM, consistent with expectations and reflecting the lower contribution from Other Income due to Astra Zeneca / Covis milestones compared to 9M 2022. SG&A (Selling, General and Administrative) investment was €316.7 MM, 2.5% higher than last year, as expected. This increase reflects the company's ongoing investments in the premarketing ramp-up for lebrikizumab, as well as its investments in the recent launches of Wynzora® and Klisyri® in the US and EU, and the rollout of Ilumetri®. Gross Margin of 64.9% was in line with expectations and reflects the impact of high input costs and inflation affecting some material purchases. R&D investment was €78.4 MM, reaching 11.6% of Net Sales. R&D expenses are expected to normalize for the full year in the range of 12% of Net Sales. Almirall finished the first 9 months of 2023 with a favourable balance sheet and solid liquidity position at 0.2x Net Debt to EBITDA. “Almirall has delivered a consistently strong operational performance throughout the first nine months of 2023, and we are pleased to modestly upgrade our Net Sales guidance for the year. As we gear up for the lebrikizumab launch, we're embarking on a transformative journey for our company. The expected EMA approval, following the positive CHMP opinion, is just around the corner. We maintain confidence in the positive trajectory of our growth drivers as we continue to support their success. Moreover, we have strategically utilized the additional capital from our recent capital increase to strengthen our portfolio, while we continue to explore other opportunities to enhance our R&D portfolio. This reflects our commitment to advancing innovation in dermatology and positions us favourably to realize our ambition of becoming a leading dermatology company, paving the way in medical dermatology by providing innovative solutions that profoundly impact patients' lives.” Carlos Gallardo Piqué, Chairman and CEO Growth Drivers Performance Psoriasis Ilumetri® (tildrakizumab), an anti-IL-23 biologic for moderate-to-severe plaque psoriasis, has continued its strong performance in 9M 2023, posting 38% growth compared to 9M 2022 and achieving Net Sales of €42 MM in Q3 in Europe. Almirall expects Q4 to resume growth momentum and anticipates that the absolute growth for 2023 will be comparable to that of 2022. Penetration of the European market continues to be on track. Furthermore, Germany accounted for almost half of the sales, while other European countries contributed more than half, demonstrating the good traction of the product in other key markets. Almirall unveiled new data at the European Association of Dermatology and Venereology Congress 2023 demonstrating for the first time that tildrakizumab improved patients’ wellbeing in moderate-to-severe psoriasis, achieving levels similar to the general population after 16 weeks and which was maintained up to week 28.1 Additionally, tildrakizumab demonstrated its effectiveness, improving patients’ health-related quality of life (HRQoL), with high rates of treatment satisfaction in patients with moderate-to-severe plaque psoriasis after 28 weeks in a real-world setting,2 with no new safety signals and a reassuring safety pro >3 consistent with previous randomized clinical trials (RCT) and real-world studies.4,5 The new evidence on the TRIBUTE study demonstrated that tildrakizumab improved other important patient-reported outcomes (PROs) such as sleep quality, which is highly correlated with itch, pain, quality of life, and work productivity and not with PASI.6,7 The results also revealed that tildrakizumab demonstrated similar efficacy and safety regardless of the baseline characteristics of the patients.8,9 Almirall also reported results from the TILOT study that demonstrated sustained efficacy and safety of tildrakizumab over 2 years in patients with moderate-to-severe plaque psoriasis in routine clinical practice including sensitive areas and improvements of itch.10 This was reflected in significant improvements in all measured parameters, including treatment satisfaction and quality of life.11 Additionally, Wynzora® cream, a once-daily aqueous cream with a fixed combination of calcipotriene and betamethasone diproprionate (CAL/BDP), indicated for the topical treatment of mild to moderate psoriasis vulgaris in adults, achieved sales of €11.8 MM in 9M 2023 vs €4.5 MM in 9M 2022. The growth of the product was primarily driven by recent country launches and the continuous expansion in key countries. The cream has maintained strong performance throughout the year. Notably, both healthcare professionals and patients have expressed positive feedback about the product, emphasizing its efficacy, quick absorption, and non-sticky feel texture. The company is confident that it has potential for significant growth in markets where the product has been already launched, such as Germany, Spain, the UK, Denmark, the Netherlands, Italy and Austria, as well as in additional EU countries in the upcoming quarters. Wynzora® is commercialized in Austria under a different tradename: Winxory. Actinic keratosis (AK) Klisyri® (tirbanibulin) ointment for actinic keratosis (AK) on the face or scalp achieved net sales of €14.4 million in Europe and the United States during the first nine months of 2023, representing a 57% increase compared to the €9.2 MM recorded in the same period in 2022. Klisyri® showed robust performance in key markets and its presence in the EU continues to grow. The product has experienced solid adoption in key countries where it has been launched. In the US, Almirall continues to focus on driving demand by differentiating Klisyri® from what is already available on the market based on efficacy, tolerability, and convenience. As a result, Klisyri® usage is associated with high overall patient satisfaction and a strong willingness to repeat treatment, as reported by dermatologists and patients.12 Prometax® In September 2023, Almirall announced the acquisition of exclusive rights to Prometax® in Spain. The product is a transdermal patch with rivastigmine to treat Alzheimer’s Disease, increasing the level of the neurotransmitter acetylcholine which helps reduce the symptoms of Alzheimer’s. The product is highly synergetic with Almirall’s existing neurology business in Spain. The transaction was agreed based on an upfront payment of €45 MM and potential milestones of up to €15 MM. Late-stage pipeline with promising potential Atopic dermatitis (AD) In the third quarter of 2023, the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) issued a positive opinion recommending the marketing authorization of lebrikizumab (EBGLYSS) for the treatment of adult and adolescent patients (12 years and older with a body weight of at least 40 kg) with moderate-to-severe atopic dermatitis (AD), who are candidates for systemic therapy. The positive CHMP opinion is now being reviewed by the European Commission (EC). The approval in the European Union is expected in November and its launch in the first European country could take place soon after. The company expects regulatory decisions for lebrikizumab in moderate-to-severe AD in additional European markets. Regarding the UK, approval from the Medicines and Healthcare Products Regulatory Agency (MHRA) is expected by the end of the year, following the EC's Reliance Procedure. In Switzerland, Almirall submitted the MAA in June 2023 and approval is expected by the end of 2024. In addition to the regulatory milestone, Almirall announced several positive clinical updates on lebrikizumab. At the European Academy of Dermatology and Venereology (EADV) Congress in October, lebrikizumab showed clinical improvements in combination with topical corticosteroids (TCS) in adult and adolescent patients with moderate-to-severe AD not adequately controlled with cyclosporine or for whom cyclosporine was not medically advisable, who were assessed over 16 weeks in the Phase III ADvantage study.13 The study met the primary endpoint at Week 16. At Week 16, lebrikizumab 250mg Q2W plus TCS significantly improved signs and symptoms of AD measured by EASI75* in 68.4% of patients, while only 40.8% of patients on placebo plus TCS achieved EASI75. Consistent benefit was also seen in additional endpoints such as EASI90, IGA, or Pruritus NRS*. Additional data presented at the EADV Congress showed sustained depth of response in patients that participated in the Phase III monotherapy ADvocate 1 & 2 studies treated with lebrikizumab over 52 weeks. Deep responses, defined as total skin clearance (Investigator's Global Assessment (IGA), Eczema Area and Severity Index (EASI 100) and itch relief (NRS 0,1), were achieved in 20% and 31% of patients by Week 16 respectively and were maintained or increased through Week 52.14 These results suggest that lebrikizumab treatment can potentially allow patients and healthcare providers to elevate their expected treatment goals in AD beyond EASI75 and NRS 0/1 response. New data on this biologic were also presented at the 43rd Annual Fall Clinical Dermatology Conference this quarter. The long-term extension study ADjoin showed patients with moderate-to-severe AD who continued treatment with lebrikizumab for up to two years experienced sustained skin clearance, itch relief and reduced disease severity with monthly maintenance dosing.15 Nearly 80% of patients with moderate-to-severe AD maintained clear or almost-clear skin with lebrikizumab monthly maintenance dosing at two years. The data set makes Almirall confident that lebrikizumab has the potential to be a first-line biologic and may support less frequent dosing. The company is working with partner Eli Lilly on further clinical studies to maximize the value of lebrikizumab, which it believes is the best antibody targeting IL-13, the key pathogenic driver of AD. Almirall looks forward to its expected approval and launch by the end of the year, while steadily intensifying its internal efforts to be ready for a successful commercial launch. *EASI=Eczema Area and Severity Index; EASI 75=at least 75% improvement from baseline in EASI; EASI 90=at least 90% improvement from baseline in EASI; IGA=Investigator’s Global Assessment; IGA (0,1)=IGA response of clear or almost clear; NRS=numeric rating scale; Q2W=every 2 weeks; Q4W=every 4 weeks (monthly) Actinic keratosis (AK) Almirall has completed the clinical study of tirbanibulin (Klisyri®) addressing the expansion to Large Field in the US. This phase III clinical study, multi-centre, open-label, single-arm study evaluated the safety and tolerability of tirbanibulin ointment 1% applied to a field of approximately 100 cm2 on the face or balding scalp in about 100 adult patients with actinic keratosis. The administration of Klisyri was well tolerated. Based on these data Almirall submitted a supplementary NDA in August 2023 and expects approval and subsequent launch in the US in H2 2024. Autoimmune dermatological diseases The company is also building an exciting early pipeline with promising recent in-licensed assets. The company is continuing its phase I study for the anti-IL-1RAP monoclonal antibody, which has potential utility across different autoimmune skin diseases. In September 2022, Almirall announced the initiation of the phase I study evaluating the safety, pharmacokinetics, pharmacodynamics, and clinical activity of ALM27134*, a potential first-in-class fully human, high-affinity monoclonal antibody that targets IL-1RAP (interleukin-1 receptor accessory protein). Almirall in-licensed exclusive global rights from Ichnos Science in 2021 to develop and commercialize ALM27134. In addition, Almirall expects to initiate a phase I clinical study for IL-2muFc autoimmune drug candidate around the end of 2023. In 2022, Almirall entered into a licensing agreement with Simcere Pharmaceutical Group for Simcere’s IL-2 mutant fusion protein (IL-2muFc) autoimmune drug candidate, ALM223** (previously SIM0278). This molecule, developed utilising Simcere’s protein engineering platform, activates regulatory T-cells. Preclinically, ALM223 exhibits an improved PK pro the potential to restore immune balance. Under the agreement signed with Simcere Pharmaceutical Group, Almirall will be granted an exclusive right to develop and commercialise ALM223 for all indications outside the Greater China region (Mainland China, Hong Kong, Macau and Taiwan). *Previously referred to as ISB 880 ** ALM223 in licensed from Simcere. Formally referred to as SIM-0278, worldwide ex-Greater China. Bispecific antibodies In October, Almirall and EpimAb Biotherapeutics announced a license agreement for the development of bispecific antibodies for up to three undisclosed target pairs. Under the terms of this agreement, Almirall will gain a license to utilize EpimAb’s proprietary Fabs-In-Tandem Immunoglobulin (FITIg®) platform technology to generate, develop and commercialize bispecific antibodies, for which Almirall will have exclusive global rights. EpimAb Biotherapeutics shall retain all rights to the FITIg® Technology. Other indications Almirall has submitted regulatory filings under the European decentralized procedure in 2022 for efinaconazole, for the treatment of mild-to-moderate fungal infection of the nail in adults and children (aged 6 years and older). This product would reinforce Almirall’s onychomycosis franchise by complementing Ciclopoli®. The regulatory approval is expected in the second half of 2024. As for the oral antibiotic Seysara® (sarecycline), the phase III clinical study conducted in China met primary and key secondary endpoints and Almirall has submitted a dossier with the Chinese National Medical Products Administration at the end of September 2023. The regulatory approval is expected in 2024. 2023 Full Year Guidance Net sales guidance upgraded: mid-single digit net sales growth (vs. initial low- to mid-single guidance) and total EBITDA between €165 MM - €180 MM. Investor Calendar 2024 Full year 2023 Financial Results – February 19th, 2024 Q1 2024 Financial Results – 13th May 2024 H1 2024 Financial Results – 22nd July 2024 9M 2024 Financial Results – 11th November 2024 About Almirall Almirall is a global biopharmaceutical company focused on medical dermatology. We collaborate with scientists and healthcare professionals to address patients' needs through science to improve their lives. Our Noble Purpose is at the core of our work: "Transform the patients' world by helping them realize their hopes and dreams for a healthy life". We invest in differentiated and ground-breaking medical dermatology products to bring our innovative solutions to patients in need. The company, founded in 1944 and headquartered in Barcelona, is publicly traded on the Spanish Stock Exchange (ticker: ALM). Throughout its 79-year history, Almirall has focused intensely on patients' needs. Almirall has a direct presence in 21 countries and strategic agreements in over 70, with about 1,800 employees. Total revenue in 2022 was €878.5 MM. For more information, please visit almirall.com Legal warning This document includes only summary information and is not intended to be exhaustive. The facts, figures and opinions contained in this document, in addition to the historical ones, are "forward-looking statements". These statements are based on the information currently available and the best estimates and assumptions that the Company considers reasonable. These statements involve risks and uncertainties beyond the control of the Company. Therefore, actual results may differ materially from those declared by such forward-looking statements. The Company expressly waives any obligation to revise or update any forward-looking statements, goals or estimates contained in this document to reflect any changes in the assumptions, events or circumstances on which such forward-looking statements are based, unless required by the applicable law. _______________________ 1 Sommer R, et al. Patient-reported well-being using tildrakizumab in a real-world setting: 28-week interim data of the phase IV POSITIVE study. Presented at the 32nd European Academy of Dermatology and Venereology (EADV) Congress, 11 – 14 October 2023, Berlin, Germany. Abstract 3490. 2 Augustin M, et al. Real-world effectiveness, quality of life, and treatment satisfaction with tildrakizumab in patients with moderate-to-severe psoriasis: 28-week interim data of the phase IV POSITIVE study. Presented at the 32nd European Academy of Dermatology and Venereology (EADV) Congress, 11 – 14 October 2023, Berlin, Germany. Abstract 3492. 3 Mrowietz U, et al. Real-world safety of tildrakizumab in patients with moderate-to-severe psoriasis: 28-week interim data of the phase IV POSITIVE study. Presented at the 32nd European Academy of Dermatology and Venereology (EADV) Congress, 11 – 14 October 2023, Berlin, Germany. Abstract 3491. 4 Thaçi D, et al. Five-year efficacy and safety of tildrakizumab in patients with moderate-to-severe psoriasis who respond at week 28: pooled analyses of two randomized phase III clinical trials (reSURFACE 1 and reSURFACE 2). Br J Dermatol. 2021 Aug;185(2):323–34. doi: 10.1111/bjd.19866. 5 Drerup KA, et al. Effective and Safe Treatment of Psoriatic Disease with the Anti-IL-23p19 Biologic Tildrakizumab: Results of a Real-World Prospective Cohort Study in Nonselected Patients. Dermatology. 2022;238:615–19. doi: 10.1159/000519924. 6 Costanzo A, et al. Tildrakizumab improves sleep quality and psoriasis-related pruritus and pain in patients with moderate-to-severe plaque psoriasis in conditions close to real clinical practice. Presented at the 32nd European Academy of Dermatology and Venereology (EADV) Congress, 11 – 14 October 2023, Berlin, Germany. Abstract 3122. 7 Costanzo A, et al. Tildrakizumab improves sleep quality, quality of life and work productivity in patients with moderate-to-severe plaque psoriasis in conditions close to real clinical practice. Presented at the 32nd European Academy of Dermatology and Venereology (EADV) Congress, 11 – 14 October 2023, Berlin, Germany. Abstract 3123. 8 Costanzo A, et al. Super responders to tildrakizumab treatment in moderate-to-severe chronic plaque psoriasis in conditions close to real clinical practice. Presented at the 32nd European Academy of Dermatology and Venereology (EADV) Congress, 11 – 14 October 2023, Berlin, Germany. Abstract 3121. 9 Costanzo A, et al. Tildrakizumab demonstrates high efficacy regardless of baseline characteristics in patients with moderate-to-severe chronic plaque psoriasis in conditions close to real clinical practice. Presented at the 32nd European Academy of Dermatology and Venereology (EADV) Congress, 11 – 14 October 2023, Berlin, Germany. Abstract 3120. 10 Tsianakas A, et al. Sustained efficacy and safety of tildrakizumab over 2 years in patients with moderate to severe plaque psoriasis in routine clinical practice: interim results in week 100 from the non-interventional, prospective, multicenter study TILOT. Presented at the 32nd European Academy of Dermatology and Venereology (EADV) Congress, 11 – 14 October 2023, Berlin, Germany. Abstract 3110. 11 Tsianakas A, et al. Tildrakizumab improves signs and symptoms in patients with moderate to severe plaque psoriasis in a real-world setting: a holistic approach. Presented at the 32nd European Academy of Dermatology and Venereology (EADV) Congress, 11 – 14 October 2023, Berlin, Germany. Abstract 3106. 12 PROAK: Patient-reported Outcomes for Tirbanibulin Effectiveness and Safety in Actinic Keratosis. SKIN The Journal of Cutaneous Medicine 2023. 13 Warren RB, et al. Efficacy and safety of lebrikizumab in combination with topical corticosteroids in patients with moderate-to-severe atopic dermatitis not adequately controlled or non-eligible for cyclosporine: a placebo-controlled, randomized Phase 3. 14 Simpson E, et al. Raising the bar of efficacy in atopic dermatitis: depth of response in patients treated with lebrikizumab over 52 weeks Presented at the 32nd European Academy of Dermatology and Venereology (EADV) Congress, 11 – 14 October 2023, Berlin, Germany. Abstract 3117. 15 Guttman-Yassky E, et al. Efficacy and Safety of Lebrikizumab Is Maintained to Two Years in Patients With Moderate-to-Severe Atopic Dermatitis​. 2023 Fall Clinical Dermatology Conference. 20th October, 2023. View source version on businesswire.com: Contacts Media contact Almirall Tinkle Laura Blázquez lblazquez@tinkle.es Phone: (+34) 600 430 581 Corporate Communications Almirall Mar Ramírez mar.ramírez@almirall.com Phone: (+34) 659 614 173 Investors’ Relations Almirall Pablo Divasson del Fraile pablo.divasson@almirall.com Phone: (+34) 93 291 3087 Source: Almirall S.A. View this news release online at:

Management to Host Conference Call at 4:30 p.m. ET Today PASADENA, Calif.--(BUSINESS WIRE)-- Xencor, Inc. (NASDAQ:XNCR), a clinical-stage biopharmaceutical company developing engineered antibodies and cytokines for the treatment of patients with cancer and autoimmune diseases, today reported financial results for the second quarter ended June 30, 2023 and provided a review of recent business and clinical highlights. “In the past quarter we continued to advance a clinical portfolio of XmAb drug candidates, enrolling patients across multiple Phase 1 and Phase 2 studies in oncology and autoimmune diseases. By year end we anticipate opening a Phase 2 study to evaluate vudalimab as a front-line treatment in metastatic non-small cell lung cancer, a large patient population with high unmet need,” said Bassil Dahiyat, Ph.D., president and chief executive officer at Xencor. “Our ongoing studies with early-stage, novel XmAb bispecific antibodies continue to generate exceptionally strong interest among investigators, in particular our ENPP3-targeted CD3 T-cell engager in renal cell carcinoma, XmAb819, and our B7H3-targeted tumor-selective CD28 co-stimulatory T-cell engager, XmAb808. Both candidates use novel antibody formats to drive tumor-specific activity that has the potential to address current gaps in treatment approaches. “We also continue to expand the portfolio of XmAb programs. We recently initiated a Phase 1 study of our potency-tuned IL12-Fc, XmAb662, to be developed in oncology, and we expect to submit an IND application later this year for XmAb541, a 2+1 format CLDN6 x CD3 bispecific antibody that we are developing for patients with ovarian cancer and other tumor types. Additionally, we anticipate submitting an IND for our second internal CD28 program in 2024.” Program Updates Vudalimab (PD-1 x CTLA-4): Xencor plans to evaluate vudalimab, a T-cell selective checkpoint inhibitor, as a first-line treatment in patients with locally advanced or metastatic non-small cell lung cancer. Part 1 of a Phase 2 study would randomize a limited number of patients at one of two doses of vudalimab, in combination with chemotherapy. The study’s second part would randomize patients to either vudalimab plus chemotherapy or pembrolizumab plus chemotherapy. The primary outcome measure of Part 2 would be a comparison of progression-free survival. Xencor anticipates initiating the study by the end of 2023. Xencor is conducting an ongoing Phase 2 study evaluating vudalimab as a monotherapy in patients with high-risk metastatic castration-resistant prostate cancer (mCRPC) or advanced gynecologic malignancies and an ongoing Phase 2 study evaluating vudalimab in combination with chemotherapy or a PARP inhibitor in patients with mCRPC. Clinical data from these studies are anticipated to be presented at a medical conference in early 2024. XmAb564 (IL2-Fc): Results from a Phase 1a clinical study in healthy volunteers were presented at the European Congress of Rheumatology (EULAR) in May 2023. Data continue to indicate a single dose of subcutaneously administered XmAb564 was well tolerated and generated durable, dose-dependent and selective expansion of regulatory T cells. Xencor is conducting a randomized, double-blind, placebo-controlled Phase 1b study to evaluate the safety and tolerability of multiple ascending doses of XmAb564 in patients with atopic dermatitis or psoriasis. XmAb662 (IL12-Fc): XmAb662 is a potency-reduced interleukin-12 Fc (IL12-Fc) fusion protein engineered to increase anti-tumor activity and immunogenicity in the tumor microenvironment by promoting high levels of interferon gamma secretion from T cells and NK cells. In July 2023, Xencor initiated a Phase 1 study in patients with advanced solid tumors. Partnership Updates Alexion Pharmaceuticals, Inc.: In May 2023, Ultomiris® (ravulizumab-cwvz), which incorporates Xencor’s Xtend™ Fc domain, was approved in the EU and Japan for the treatment of certain adult patients with neuromyelitis optica spectrum disorder (NMOSD). In the second quarter of 2023, Xencor earned $11.2 million of royalty revenue from Alexion on net sales of Ultomiris. Amgen Inc.: Interim results from a Phase 1 study of xaluritamig (AMG 509), a STEAP1 x CD3 XmAb 2+1 bispecific antibody, in patients with mCRPC were accepted for presentation at the European Society for Medical Oncology (ESMO) Congress on October 20, 2023. Zenas BioPharma Ltd.: In the second quarter of 2023, Xencor earned a $10 million development milestone related to Zenas’ Phase 3 study evaluating obexelimab in patients with immunoglobulin G4-related disease (IgG4-RD). A manuscript with results from the Phase 2 study, which was sponsored and conducted by Xencor, was first published online in The Lancet Rheumatology in August 2023. Ultomiris is a registered trademark of Alexion Pharmaceuticals, Inc. Financial Results for the Second Quarter and Six Months Ended June 30, 2023 Cash, cash equivalents, receivables and marketable debt securities totaled $531.4 million as of June 30, 2023, compared to $613.5 million as of December 31, 2022. Total revenue for the second quarter ended June 30, 2023 was $45.5 million, compared to $30.2 million for the same period in 2022. Revenues earned in the second quarter of 2023 were primarily from research revenue from our second Janssen Biotech collaboration, royalty revenue from Alexion and milestone revenue from Zenas, compared to the same period in 2022, which were primarily royalties from Alexion and Vir Biotechnology. Revenues for the six months ended June 30, 2023 were $64.5 million, compared to $115.7 million for the same period in 2022. Revenue for the six-month period in 2023 were primarily from research revenue from our second Janssen collaboration, royalty revenue from Alexion and milestone revenue from Janssen and Zenas, compared to the same period in 2022, which were earned primarily from milestone revenue from Astellas and royalty revenue from Alexion, MorphoSys and Vir. Research and development (R&D) expenses for the second quarter ended June 30, 2023 were $60.1 million, compared to $47.1 million for the same period in 2022. Increased R&D spending for the second quarter of 2023 compared to 2022 is primarily due to increased spending on development programs including vudalimab, plamotamab, XmAb819 and XmAb541 and other research and early-stage programs. R&D expenses for the six months ended June 30, 2023 were $124.4 million, compared to $94.8 million for the same period in 2022. Increased R&D spending for the first six months of 2023 compared to 2022 is primarily due to an increase in spending on development programs including vudalimab, XmAb541 and XmAb564 and other research and early-stage programs. General and administrative (G&A) expenses for the second quarter ended June 30, 2023 were $11.5 million, compared to $11.1 million for the same period in 2022. G&A expenses for the six months ended June 30, 2023 were $25.4 million, compared to $22.4 million for the same period in 2022. Increased G&A spending for the second quarter and first six months of 2023 compared to the same periods in 2022 reflects increased spending on professional services and additional facility costs. Other income (expense) for the second quarter ended June 30, 2023 was $4.0 million, compared to $(6.0) million for the same period in 2022. Other income (expense) for the six months ended June 30, 2023 was $2.6 million, compared to $(8.8) million for the same period in 2022. The increase in other income for the three and six months ended June 30, 2023 over other expense for the same periods in 2022 is due to additional interest income earned and lower unrealized loss recorded from equity investments. Non-cash, stock-based compensation expense for the six months ended June 30, 2023 was $26.2 million, compared to $23.4 million for the same period in 2022. Net loss for the second quarter ended June 30, 2023 was $22.0 million, or $(0.37) on a fully diluted per share basis, compared to net loss of $34.0 million, or $(0.57) on a fully diluted per share basis, for the same period in 2022. Decreased net loss in the second quarter of 2023 compared to 2022 is primarily due to additional income and interest earned. For the six months ended June 30, 2023, net loss was $82.7 million, or $(1.38) on a fully diluted per share basis, compared to net loss of $10.4 million, or $(0.17) on a fully diluted per share basis, for the same period in 2022. Increased net loss in the first six months of 2023 compared to 2022 is primarily due to decreased royalties from Vir and increased R&D expenses. The total shares outstanding were 60,600,060 as of June 30, 2023, compared to 59,684,420 as of June 30, 2022. Financial Guidance Based on current operating plans, Xencor expects to have cash to fund research and development programs and operations through the end of 2025. The Company expects to end 2023 with between $425 million and $475 million in cash, cash equivalents, receivables and marketable debt securities. Conference Call and Webcast Xencor will host a conference call and webcast today at 4:30 p.m. ET (1:30 p.m. PT) to discuss the second quarter 2023 financial results and provide a corporate update. The live webcast may be accessed through “Events & Presentations” in the Investors section of the Company’s website, located at investors.xencor.com. Telephone participants may register to receive a dial-in number and unique passcode that can be used to access the call. A recording will be available for at least 30 days. About Xencor, Inc. Xencor is a clinical-stage biopharmaceutical company developing engineered antibodies and cytokines for the treatment of patients with cancer and autoimmune diseases. More than 20 candidates engineered with Xencor's XmAb® technology are in clinical development, and three XmAb medicines are marketed by partners. Xencor's XmAb engineering technology enables small changes to a protein's structure that result in new mechanisms of therapeutic action. For more information, please visit . Forward-Looking Statements Certain statements contained in this press release may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include statements that are not purely statements of historical fact, and can generally be identified by the use of words such as “potential,” “can,” “will,” “plan,” “may,” “could,” “would,” “expect,” “anticipate,” “seek,” “look forward,” “believe,” “committed,” “investigational,” and similar terms, or by express or implied discussions relating to Xencor’s business, including, but not limited to, statements regarding planned additional clinical trials, the quotations from Xencor's president and chief executive officer, our projected financial resources and other statements that are not purely statements of historical fact. Such statements are made on the basis of the current beliefs, expectations, and assumptions of the management of Xencor and are subject to significant known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements and the timing of events to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. Such risks include, without limitation, the risks associated with the process of discovering, developing, manufacturing and commercializing drugs that are safe and effective for use as human therapeutics and other risks, including the ability of publicly disclosed preliminary clinical trial data to support continued clinical development and regulatory approval for specific treatments, in each case as described in Xencor's public securities filings. For a discussion of these and other factors, please refer to Xencor's annual report on Form 10-K for the year ended December 31, 2022 as well as Xencor's subsequent filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended to date. All forward-looking statements are qualified in their entirety by this cautionary statement and Xencor undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof, except as required by law. Xencor, Inc. Condensed Balance Sheets (in thousands) June 30, December 31, 2023 2022 (unaudited) Assets Current assets Cash and cash equivalents $ 34,710 $ 53,942 Marketable debt securities 476,667 526,689 Marketable equity securities 39,995 42,431 Accounts receivable 20,019 28,997 Prepaid expenses 22,171 23,283 Total current assets 593,562 675,342 Property and equipment, net 67,997 59,183 Intangible assets, net 18,708 18,500 Marketable debt securities - long term — 3,826 Marketable equity securities - long term 64,210 54,383 Right of use asset 33,046 34,419 Other assets 598 613 Total assets $ 778,121 $ 846,266 Liabilities and stockholders’ equity Current liabilities Accounts payable and accrued liabilities $ 32,537 $ 28,816 Deferred revenue 7,865 30,320 Lease liabilities 4,228 4,708 Total current liabilities 44,630 63,844 Lease liabilities, net of current portion 54,615 54,926 Total liabilities 99,245 118,770 Stockholders’ equity 678,876 727,496 Total liabilities and stockholders’ equity $ 778,121 $ 846,266 The 2022 balance sheet was derived from the 2022 annual financial statements included in the Form 10-K that was filed on February 24, 2023 Xencor Inc. Condensed Statements of Comprehensive Income (Loss) (in thousands, except share and per share data) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (unaudited) Revenues $ 45,523 $ 30,175 $ 64,485 $ 115,670 Operating expenses: Research and development 60,060 47,084 124,439 94,839 General and administrative 11,460 11,091 25,408 22,364 Total operating expenses 71,520 58,175 149,847 117,203 Loss from operations (25,997 ) (28,000 ) (85,362 ) (1,533 ) Other income (expense), net 4,043 (5,975 ) 2,645 (8,847 ) Net loss (21,954 ) (33,975 ) (82,717 ) (10,380 ) Other comprehensive gain (loss) Net unrealized gain (loss) on marketable debt securities 1,765 (1,823 ) 5,093 (7,435 ) Comprehensive loss $ (20,189 ) $ (35,798 ) $ (77,624 ) $ (17,815 ) Net loss per share: Basic and diluted net loss per share $ (0.37 ) $ (0.57 ) $ (1.38 ) $ (0.17 ) Weighted-average number of common shares used in net loss per share applicable to common stockholders - basic and diluted 59,807,558 59,567,139 59,922,784 59,487,924 View source version on businesswire.com: Contacts For Investors: Charles Liles cliles@xencor.com (626) 737-8118 For Media: Jason I. Spark Evoke Canale jason.spark@evokegroup.com (619) 849-6005 Source: Xencor, Inc. View this news release online at: